Thoughts from Dave Mead and discussion about issues and concerns for Small and Mid-size Businesses. Some discussion topics will include strategic planning and execution, improving profitability and cash flow, maximizing value for exit.

Friday, November 14, 2014

[Editor's Note: Almost 2/3 of all strategies fail
to reach expectations. Why do so many business strategies fail? Below are some
key reasons. Knowing the barriers in your organization to successful planning
and execution is the first step. Clients that follow our recommendations have
significantly outperformed the competition. We like to say, "A good plan,
well executed, beats a great plan, poorly executed, every time." Contact
us if you would like more information.

Fuzzy goals lead to fuzzy outcomes. While it seems obvious, many
organizations simply don't articulate the specific goal of a business strategy.
If the goal of your customer intimacy strategy is to form deeper customer
relationships, that's fuzzy. If the goal is to increase customer retention by
10 percent and increase annual revenue per customer by $10,000 and net profit
by $1,000, that's clear. Here, deeper customer relationships may be the
mechanism to achieve the goal.

2. Too many goals

When everything is a priority, nothing gets accomplished. Many
so-called strategic plans have too many goals, objectives, success drivers,
strategies, initiatives and so on. Worse, it's not clear how these various
appendages are linked. Is it any surprise these plans sit on shelves and
collect dust? Choose to do fewer things much better.

3. Metrics and Alignment - Either no metrics or vague metrics

Many plans are simply a brainstormed list of things to get done by
unspecified people at indeterminate times. A plan with specifics outlines who
will do what by when. It takes into account the sequencing and timing of tasks,
activities and resources. Make certain that the goals of everyone in the
organization are aligned to the few key objectives.

4. Visibility - Progress isn't measured and managed

Ever notice how plans placed in the spotlight flourish while those
left in the dark shrivel? Any plan worth executing is worth tracking. A monthly
meeting with a tight agenda can quickly determine what actions have been taken;
what progress has been made; what will be accomplished over the next month and
by whom, and what, if any, challenges have emerged. This builds commitment,
accountability and confidence in the process.

5. You lack the right people

Some of those nice people who work for you may not be the right
people to get the job done. That statement makes you uncomfortable, doesn't it?
Many have been loyal, are committed to the culture, and may be friends and
family. However, If you are truly committed to winning, or achieving success -
however you define it - then at some point you have to take a long, hard,
honest look at the capabilities of your people. Point them in the right
direction, support them, develop them - give them a fair chance to succeed. But
if they can't get it done, then your responsibility is to get people who can.

6. Flexibility - Failure to update the plan to stay real

Reserve the right to do what makes sense. Plans are based on
assumptions that can change over time. If they do change, then the plan may
need to change. A quarterly "recalibration" meeting is a good forum
to test your assumptions and determine which, if any, have changed. The meeting
may result in either a re-validation or redesign of the plan. It ensures the
plan stays real and relevant.

7. Reaction to Failure - Failure is met with indifference or an
inquisition

Is
your team serious about its definition of success? Your response to failure
sends a clear message about your commitment to winning. Just as importantly, it
sends a message about your credibility. Do you ignore a failed initiative and
move on to the next big thing (which conveys that you really weren't that
committed and you shouldn't be taken seriously)? Do you look for scapegoats
(which communicates that you don't take personal responsibility and can't be
trusted)? Or do you first look in the mirror, take responsibility, then
publicly commit to getting it right, and effectively engage your people to make
it happen? Your choice speaks volumes about who you are as a leader.

Where does your organization stand? Mead Consulting Group's process begins with
the identification of the barriers and obstacles to successful planning and
execution. These "barriers" develop in ALL companies over time. In
fact, some of the very things that help a company succeed at early levels will
prevent them from succeeding at the next level. The key is to address these
barriers so that the path is uncluttered.

Welcome to Mead's Issues for Growth

Since 1991, we have been publishing a periodic eLetter "Issues for Growth" that contains articles or thoughts of interest to business owners looking to grow and improve their businesses. We invite your comments and discussion.

About Me

We have been consulting with small and mid-size businesses for over 30 years, helping companies move to the "next level of success" by focusing on strategies that the company can execute well and aligning all activities within the company to those key strategies.
I have started and run 7 companies - a couple of great successes, a few moderate successes, a couple of screaming failures.